Reserves For Claims

6 Months Ended

Jun. 30, 2012

Reserves For Claims [Abstract]

Reserves For Claims

Note 2 - Reserves for Claims

     Transactions in the reserves for claims for the six months ended June 30, 2012 and the year ended December 31, 2011 are summarized as follows:

		June 30, 2012			December 31, 2011
Balance, beginning of period	$	37,996,000		$	38,198,700
Provision, charged to operations		1,992,466			3,342,427
Payments of claims, net of recoveries		(2,441,466	)		(3,545,127	)
Ending balance	$	37,547,000		$	37,996,000

     The total reserve for all reported and unreported losses the Company incurred through June 30, 2012 is represented by the reserves for claims. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future. Despite the variability of such estimates, management believes that the reserves are adequate to cover claim losses which might result from pending and future claims under policies issued through June 30, 2012. The Company continually reviews and adjusts its reserve estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant.

     A summary of the Company's loss reserves, broken down into its components of known title claims and incurred but not reported claims ("IBNR"), follows:

		June 30, 2012	%		December 31, 2011	%
Known title claims	$	6,257,274	16.7	$	6,233,501	16.4
IBNR		31,289,726	83.3		31,762,499	83.6
Total loss reserves	$	37,547,000	100	$	37,996,000	100

     Claims and losses paid are charged to the reserves for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.